NEW YORK (TheStreet) -- CalAmp (CAMP) was falling 17% to $18.30 after-hours Tuesday after guiding below analysts' estimates for the second quarter, and despite beating analysts' estimates for earnings and revenue in the first quarter.
For the first quarter CalAmp reported earnings of 19 cents a share, while analysts surveyed by Thomson Reuters expected earnings of 18 cents a share. Revenue grew 9.8% from the year-ago quarter to $59 million, above analysts' estimates of $57.98 million.
Looking forward to the second quarter CalAmp expects earnings of 17 cents to 21 cents a share, below analysts' estimates of 22 cents a share. The company expects revenue of $57 million to $61 million for the second quarter, while analysts expect revenue of $62.5 million in revenue for the quarter.
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TheStreet Ratings team rates CALAMP CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CALAMP CORP (CAMP) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 2.6%. Since the same quarter one year prior, revenues rose by 23.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- CAMP's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, CAMP has a quick ratio of 1.53, which demonstrates the ability of the company to cover short-term liquidity needs.
- 35.24% is the gross profit margin for CALAMP CORP which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, CAMP's net profit margin of 5.12% significantly trails the industry average.
- Compared to its closing price of one year ago, CAMP's share price has jumped by 53.96%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- CALAMP CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, CALAMP CORP reported lower earnings of $0.33 versus $1.46 in the prior year. This year, the market expects an improvement in earnings ($0.98 versus $0.33).
- You can view the full analysis from the report here: CAMP Ratings Report